Saturday, February 11, 2012

Saturday Morning Setups and Outlook for Next Week

Hi traders - here's your outlook for next week.  We finally saw some decent selling on Friday, with the Nasdaq down twenty-three points and the S&P down nine.  I don't want to say that the selling wasn't a big deal, of now, it was no big deal.   Volume was lower and being where we are at, a little selling here is actually a good thing as long as it doesn't become extreme, and certainly Friday wasn't what I would call "extreme" selling.   I still have a ton of good-looking charts and as long as that continues, I am optimistic.

The only worrisome action I saw on Friday was in small caps, where the Russell 2000 did close below its nine day EMA for the first time since December 19.  This is something to keep an eye on, but perhaps the twenty day EMA will come in as support around 800.  As of now, both the S&P and Nasdaq held and are still clearly on buy signals, so unless they break down as well, I think we are OK here.

Russell 2000

To be fair however, right now I only have long positions in LNKD (which I hope I can hold longer-term off of this earnings catalyst), RLD, and a hedge position in TZA.  I am ready to enter more longs but if the market doesn't cooperate I shouldn't be hurt too bad.   Cash isn't bad here just because of where we are sitting but certainly the move over the past month and a half along with the number of attractive setups still out there should have you leaning much more to the bullish side.   I guess overall I am expecting further upside but a little selling in the short-term would not shock me.

Here are ten setups I'll be watching next week.  A few have earnings so please read the notes on the charts.   I did not include all of the charts I am watching, specificially the ones I have posted over the past week at some point but have not yet triggered (VNET, EZPW, VIT, DANG, CCJ, AGRO for instance).  Others that almost made this final list include P, DRIV, CYT, and DDD.  If I have time, I will do a video tomorrow looking at some other potential earnings names for next week, as those are where I have made some good money over the past week or so. 

All Charts from TC2000, Courtesy of Worden Brothers, Inc.

Good luck next week and enjoy the rest of your weekend.  As always, if you have any questions or comments about these charts or the website in general, feel free to email me. 

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